PA and NJ have tax reciprocity with regard to W-2 wages. If you lived in NJ the entire tax year, and worked in PA, your W-2 wages are not subject to PA taxes. For tax purposes, your PA wages are considered NJ income, and are fully taxable by NJ.

Do I need to file PA state tax return if I live in NJ?

NJ Taxation Compensation paid to Pennsylvania residents employed in New Jersey is not subject to New Jersey Income Tax under the terms of the Reciprocal Personal Income Tax Agreement between the states. Similarly, New Jersey residents are not subject to Pennsylvania income tax either.

Where do I file for unemployment if I live in NJ and work in PA?

A resident of New Jersey who works in Pennsylvania is not eligible for New Jersey family leave because they have no wages in New Jersey for “covered employment.” If you lived in New Jersey while commuting to work in Pennsylvania, you must file your unemployment claim directly with Pennsylvania by calling their …

Can you work in NJ and live in PA?

Live in PA and work in NJ. You’re correct, NJ and PA do have tax reciprocity for W-2 wages. If your only income from NJ was W-2 wages, you do not have to file a NJ tax return. That income is taxable only by your home state of PA.

Do you have to file taxes in NJ if you live in PA?

You’re correct, NJ and PA do have tax reciprocity for W-2 wages. If your only income from NJ was W-2 wages, you do not have to file a NJ tax return. That income is taxable only by your home state of PA. If that’s your situation, answer NO in the My Info section to the question about having income from other states.

What happens if you work in Pennsylvania and live in another state?

If you live in Pennsylvania and work in one of the two nonreciprocal states, the Pennsylvania credit is limited to the lesser of the tax you paid to the nonresident state or the Pennsylvania tax due on the compensation that was taxed in the nonresident state.

Can a W-2 include more than one state?

Your W-2 can include several states, and this is often the case for taxpayers who travel for work like consultants or professional athletes Business Income – This gets a little trickier, as states have different rules to determine whether business income is sourced to their state or not.